AN HISTORICAL REVIEW OF STUDIES OF THE INTELLIGENCE COMMUNITY FOR THE COMMISSION ON THE ORGANIZATION OF THE GOVERNMENT FOR THE CONDUCT OF FOREIGN POLICY

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CIA-RDP80M01048A000300270018-3
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RIPPUB
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T
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62
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December 20, 2016
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August 2, 2006
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18
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Publication Date: 
December 1, 1974
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SUMMARY
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}_l Approved For Release 2006/08/02 : CIA-RDP8.0M01048A000300270018-3 TOP 0" -CC'- .1 . ET (when a.nn~ties Detached) TS 206439-74 Cy of 20 Cys AN HISTORICAL RE V IE`Y_ O_F STUDIES OF THE INTELLIGENCE CO1U\AUNITY FOR THE COMMI TION ON THE ORGANIZATION OF THE GOVERNMENT FOR THE CONDUCT OF FOREIGN POLICY December 1974 MORKIDIF ages.,1 -61? Approved For Release 2006/08/02 : CIA-RDP80M01048A000300270018-3 (When nnexes Detached) T ?06439-74 This report is a review of a number of major studies of the intelligence community. made since the Joist Study Group Report of 1960. This report was selected as the sta.rtin` point, because it had a major impact on the evolution of the in ellicence comilT..-unity. One of its more significant results was the c_-eation of the decline in the power and independence of the indi-vidual Service intelligence agencies. Moreover, institutions, relationships and distributions of responsibility of the pre-1960 period bear little resemblance to those that have evolved since that time. The intelligence community is almost continuously under review or examination. Hardly a year has passed since 1960 without a major study of some aspect of intelligence activities being undertaken. Sixteen such reports have been selected for this review as being sub- stantively significant, or particularly effective in bringing about improvement or advancing organizational evolution. The observations and recommendations of these sixteen reports have been assembled around .a number of recurring topics and concerns. In this regard, one cautionary note seems appropriate: The cumulative impact of this review is necessarily more negative than the intelligence cornsnunity's record of. achievement would warrnt, because the source materials used naturally tend to address what is wrong rather than what is right with. intelligence activities. The individual reports themselves have been condensed, but with all major points and recommendations preserved, and these are attached as annexes to this study. TOP SECRET (When Annexes Detached Approved For Release 2006/08/02 : CIA-RDP80M01048A000300270018- TOP SECRET (when Annexes detached) TABLE OF CONTENTS Page A. The Direction of the Intelligence Community A-1 The Basic Authority A-1 The Director of Central intelligence as Community Leader ._A-3 The Separation of the DCI from CIA A-5 The DCI's Community Staff A-7 The Role of the United States Intelligence Board A-9- The Role of the Executive Committee A-10 Summary B. Selected Intra-Community Relationships B-I A Single Defense Intelligence Authority B-1 A Single Defense Intelligence Agency B-3 The Authority of NSA versus the Military B-4 The State Department, the Foreign Service Intelligence -- B-6 A Single Photo Interpretation Center B-7 C. Resource Planning and Management C-1 The Authority of the DCI over Resources C-1 A Community Resource Management Body C-2 A Single,Defense Resource 'anager C-4 Long-Range Planning C-6 Cross-Program Reviews C-7 Control of R & D C-9 Tactical Intelligence Resources C-10 D. Req,tire:aents E. Collection E-1 Evaluating Collection E-1 Relations with Foreign Services E-2 Expansion of Overt Collection E--3 F. Production The Information Explosion Improving the Product Basic Substantive Research F-i -3 F-5. Strategic Warning and the National In-di cations .Cen-ter Compartmentation and its -Effects TS 206439-74 Approved For Release 2006/08/02 : CIA-RDP8OMO1048AO00300270018-3 TOP SECRET (when Annexes detacicd) G.- Consume-,: Feedback TS 206439-74 Page C-1 H. The Clandestine Services and Covert Action H-1 Coordination and Direction H-1 Military Clandestine Operations H-3 Cover 11-4 Counterintelligence. H--4- Glossary of Abbreviations Annexes - Summaries of Original Source Materials A. The. Joint Study Group Report - December 1960 B. The Sprague Report - December 1960 C. The Kirkpatrick-Schuyler-Coyne Report - April 1962 D. The Cuban Missile Crisis Post Morten - December 1962 E. The CIA Long Range. Plan - August 1965 - F. The Cunningham Report - December 1966 G. The Shute Report - February 1967 ti. The Katzenbach Report - March 1967 1. The HACIT Report March 1968 J. The Eaton Report - August 1968 K. The Lindsay Report - December 1968 L. The Bross Report - January 1969 M. The Froehlke Report - July 1969 N. The Fitzhugh Blue Ribbon Panel Report - July 1970 0. The Schlesinger Report - March 1971 P. The President's'Directive - November 1971 Q. The Ford Letter - October 1974 TOP,SECRET (when Anne; es detached) Approved For Release 2006/08/02 : CIA-RDP80MO 1048A000300270018-3 T( :06139-74 The basic authority for the intelligence community is the National Security Act of 1947, which has itself been elaborated upon seven times since by National Security Council intelligence Directives (NSCID's). The most con prLnensive is NSCID-1, which delineates the Director of Central Intelligc__ce's Basic D ,,ties and Responsibilities. i 1' revised in tTr The hates' version or ~:SCL7-1, ~~hic.Tn _ was accorda ._ce with the Presidentts Directive of 1\-,o-,,-,em ber 1971, lays the groundwork for the DCI to assume a greater role as leader of the intelligence com- munity, a development reccrnimended by all major classified reviews of the corn- .unity organization since 1960. These reports are virtually unanimous in stating that the DCI should not be physically separated from CIA in performing his community duties. An intelligence com- munity staff drawn from all the intelligence agencies has been consistently recommended over the years, but little was done along this line until it was unequivocally directed by the President in 1971. The United States Intelligence Board's functions and member- ship have been commented on frequently and usually not too favorably in terms of enchan_ced-management of the community. USIB's expertise in substantive matters is effectively recognized in the President's 1971 Directive, which establishes the Board as one of two advisory bodies to the DCI, with the Intelligence Resources Advisory Corr ni.ttee (IR_4C) being created to assume the responsibility for resource management. he concentration under the Secretary of Defense of about 80 per cent of all intelligence resources made the establishment of the DCI's role in resource management for the community rather problematical. Despite the President's Directive charging the DCI with preparing a consolidated intelligence program budget for all intelligence activities, including tactical, he is not yet fully in control of the situation. A community resource management body was recommended in several reports, particularly as resources became more limited and hard choices as to program direction had to'be made. A number of proposals were made over the years and the establishment of IRAC was intended to give the DCI the ability to carry out his community management respon_si ilities. A single Defense intelligence authority has been sought since the Joint Study Group Report of 1960. Successive reports have variously proposed this role for the JCS, DIA and in the late 1960's fora new Approved For Release 2006/08/02: CIA-R DP80M01048A0003002700 E 3 TOP Si:CR E TS( ` 0'.i439-74 official with a close relationship with the Secretary of Defense--first as a Special Assistant, then as a part-tine task for the Assistant Secretary of Defense for Ad_ninistration, and finally for the Assistant Secretary of Defense for Intelligence. A single Defense intelligence agency has also been repeatedly proposed, first as a function of the JCS, then as DIA, and then (after DIA ssemed unable to assume all intelligence tasks and the Service intelligence agencies regained many of their prerogatives) as a new and powerful Director of Defense Intelligence or other new institutional creations. The President=s Directive of 1971, however, retained DLz as the prime Defense intelligence agency. Fragmented Defense resource mai agement.received frequent mention and several suggestions aimed at curing the situationwere made. Nevertheless, centralized reviews of Defense resource allocations did not begin until 1970, and only began to be done effectively when the office of the Assistant Secretary of Defense for Intelligence was created in 1972. Long-range resource planning was advocated repeatedly in many reports. It is still in the earliest stages of development and was not singled out as a specific task for the DCI by the President's Directive of.1971. Cross-program review of resources, also frequently referred to, has fared somewhat better, but it also is at an early stage of implementation as far as cost/effectiveness techniques for cross-program evaluation are concerned. At present, the review- .process centers on specific resource issues; true comparative evaluation across several programs is yet to be achieved. Central management and control of tactical intelligence resources has been hampered by continuing disagreements over criteria for determining what is tactical intelligence, what is national intelli- gence and what is force support intelligence, and thus properly organic to the commands. Tactical intelligence resources have been estimated at about one-third of.the budget of national intelligence resources. The President's Directive clearly charges the DCI with responsibility to include these resources in his consolidated intelligence budget, but the means to do so are yet to be worked out. The contest between the National Security Agency (NSA) on -one hand and the JCS bolstered by tactical forces on the other for con- trol of certain Sigint resources, primarily in the electronic intelligence field, attracted attention of several review groups, particularly during the Vietnam War. Most of the reports recorru-Wended that NSA retain.- Approved For Release 2006/08/02 : CIA-RDP80MO1048A000300270018-3 TOP SECRET TS 2( '39-74 control over such Sigint resources and that it such resources t/ere t: e needed by tactical corn man'ders, they be budgeted for as part of tactical force budget, but nevertheless not lie denied to national intelligence users. intelligence activities of the Department of State have .figured relatively little in t??e reports reviewed. Concern over the need for a national photo-intelligence center, found in reports in the early lo, 631 s, has disaa .eared ;;,ith the establishment of 1`P_C. 1'Y orrv then t .reed to tiPIC's ability to handle the workload as imagery satellites became more effective and the "stake" increasingly abundant. The disarray of community intelligence requirements is mentioned a number of times, notably in the Cunningham Report of 1966. In the absence of consumer guidance as to the most important matters, analysts tend to corer all bets by issuing requirements. for-much =---ore information than was likely to be needed, or in fact could ever be used. The President's Directive gave the DCI, as one of his four major responsibilities, that of reconciling require- ments and priorities within-budgetary contraints and charged the USIB to advise him in this regard. Relatively little space in this report is devoted to collection questions- Reviews and inquiries into various collection systems have been numerous, but are generally too specialized and narrow in scope to qualify for consideration by the Commission. The important matter of evaluating the effectiveness of collection as a whole is noted, but the difficulty of tying good information to the sources that produced it has apparently made any systematic approach to this process uncertain and imperfect. Many reports, particularly in the mid-1960's, referred to the information explosion as a major problem. Technical collection advances were creating floods of information with no proportional increase in the analytical capacity to exploit it. The Schlesinger Report is 1971 pointed to the great increase in information collected by technical means, but noted that there had been little progress in developing human sources with.access to foreign intentions, doctrines or politica processes. Improvement of the analytical functions and the overall relevancy of the intelligence product was likewise of considerable concern, and many reports addressed it. The President's Directive described the need for product improvement as urgent and established the NSC intelligence Community (NSCIC) as a consumer.. Approved For Release 2006/08/02 : CIA-RDP80MO 1048A000300270018-3 iv C 'I O P S -Ir C R::: 206439-74 forum to give direction and guirls.r:ce on production and to evaluate :he usefulness of intelligence report.;. Both this directive and President Fol'd's letter of October 197-t placed specific responsibility on the DC! to assure that national intelligence is of the highest quality to support foreign policy and Tli'_i'_tary Operations. red attention in the Few topics received as .. a:,?_he reports as the :?eed for consumer guidance' to inc. ease the pertinence and effective- ness of community activities. Several reports pointed to the fact that, in the absence of this guidance, the community was talking to itself, producing against its own requirements and operating with scant reference to what policy makers really needed. Bot'_a the Schlesinger Report and the President's Directive called for better consumer representation in comm-,jnity deliberations, and the NSCIC was set up to bring this about. As to the Clandestine Services and covert action, the general finding of the reports that dealt with these subjects was that existing control and supervision over covert operations was adequate and that the imposition of further outside review authorities only carried. the additional risk of disclosure without adding any important safeguards. The reports were also strongly opposed to separating the Clandestine Services from CIA or to spliting off the covert action function. TOP SECP%ET I ?- Approved For Release 2006/08/02 : CIA-RDP80M01-048A00030027091 a-3- - `iJ '206-;39-7 A. Te Drect_en of t'ie Int~__igenc?,. Con-1-unity- -_; The organic law of the intelligence community is coiZ- tained in the National Security Act of 1947, as amended. Section 101 established the National Security Council to advise the President with res?ect to the integration of domestic, foreign and militarti 3olicies roia:.i.nn, to the national security. Section 102 established the Central Intelligence Agency under the `y Council (NSC) to be headed by y the -National ` ~ion a1 Sac-:r _i:. Director of Central Intel igen_ce (DCI), with a Deputy Director of Central intelligence to act for the DCI in his absence or dis ability. Section 102 furt _er stipulates that it shall be the duty.of the Agency (the Central Intelligence Agency), for the purpose of coordinating the intelligence activities of the several depart- ments and agencies and under the direction of the `:SC, to: --advise the NSC concerning such intelligence activities as relate to national security; --make recommendations to the NSC for the coordination of such intelligence activities; --correlate and evaluate intelligence relating to "the national security and provide for the dissemination within the government, provided that the departments and other agencies shall continue to collect, evaluate, correlate and disseminate departmental intelligence, and provided that the DCI shall be responsible for protecting intelligence sources and methods from unauthorized disclosure; --perform for existing intelligence agencies such additional services of common concern as the NSC determines can be more efficientl accom- plished centrally. To the extent recommended by the NSC and approved by the President, intelligence of the departments and agencies shall be open to inspection by the DCI and shall be made avail- able to the DCI for correlation, evaluation and dissemination. Approved For Release 2006/08/02 :. CIA-R DP80M01048A000300270Oi8-, 2 TS( J6439-7=1 The _ ~cogn_ ion Section lUZ(d)(3) of the Act of depart- mental intelli once as continuing to be provided by the several existing departments an' agencies has had lasting imoact on the role of the DCI in coordinating the intelligence activities of the government. At the very least, the acknowledged responsibility for departmental intelligence has permitted the various intelli- gence services and agencies to continue to operate collection, processing and production systems for their own needs, leading to duplication, contrasting views on situations, and a continuing .resistance to any central authority. The provision that the DCI may inspect intelligence of the departments and agencies, though limited by implication to substantive matters, has tended over the years to be e_, ended beyond substance to management and lately to resource matters, and in effect constitutes the basis for the DCI's survey power. The National Security Council, in order to regulate and direct the intelligence activities of the government, has issued National Security Council Intelligence Directives (NSCID's) establishing basic policy for certain classes of intelligence activities. The number of NSCID's and their provisions have changed from time to time, but the present list of them is as follows: NSCID -1 Basic Duties and Responsibilities NSCID-2 Coordination of Overt Collection Activities NSCID-3. Coordination of Intelligence Production NSCID-4 The Defector Program NSCID-5 U. S. Espionage and Counter Intelligence Activities Abroad NSCID -6 Signals Intelligence NSCID-7 Critical Intelligence Corn.u- ications NSCID-8 Photographic Interpretation The NSCID's are further particularized and interpreted in a series of Director of Central Intelligence Directives (DCID's), related by number to the NSCID's from which they derive, which form the basic documentary means of coordinating the intelligence community, covering as they do in aggregate the greater part of 1.7 the community's varied activities. Most of the current NSCID's and.DCID`s were last revised in 1972, so they are relevant to present-day organizations and functions. Efforts are under way to develop a single omnibus NSCID to incorporate the provisions of existing directives. 4 CYJ .~.a. .. - . Approved For Release 2006/08/02 : CIA=RDP80MO1048A00030027001-8=3.=_:. TS 06439-74 The most far-reacc,i_n o` the NSCID's is NSCiD-1, Basic D; ties aril Respons.i),:i+t?es. The c_-. rent version, dated Feb- ru__ y 17, 1972, directs t11 DC= .o coordinate the foreign. intelli- ger1 ce activities of the Ljn _e:i ~.ates; esF ter, lisixes the National Securi*_y Council Intelligence Committee to gi-re direction to national substantive intelligence and provide consumer evalua- tion of the products; an d directs _he.DCI to plan, reviean_d evaluate all intelligence activities and the allocation of all intelligence resources, to prod ace national intelligence, to chair advisory boards and co= it-tees, and to establish and reconcile requirements and prio_=ties within. budgetary con- straints. The DCI is also coarged to prepare and submit a consolidated intelligence program/budget, to issue DCID's as appropriate, to formulate policy on arrangements with foreign governments on intelligence matters, to review security stan- dards and practices, and to make such surveys of departmental intelligence activities as he may deem necessary to his responsi- bilities to the NSC. The directive goes on to establish the Intelligence Resources Advisory Committee (IP,A.C) to advise the DCI on the intelligence budget and the allocation of resources; to restructure the United States Intelligence Board (USIB) and define more explicitly than before its responsibilities to the DCI; to define national, departmental and interdepartmental intelligence; to stipulate roles in the protection of intelligence sources and methods; and, for the first time, to define the corn_-nunity respon- sibilities of the DCI. 2. The Director of Central Intelligence as Community Leader As a result of the President's Directive of November 1971 and under the revised NSCID-l of February 1972, the DCI is charged to seek the attainment of the following objectives as essential to the efficient and effective functioning of the intelli- community: --continuing review of the responsiveness of the U. S. intelligence effort to national requirements; --assurance of authoritative and responsible leader- ship of the community; --achievement of more efficient use of intelligence resources; . --review and revision of intelligence functions and.. elimination of inefficient or outmoded activities; --improvement in the quality, scope and timeliness of the community product; --enhancement of T.; . S. policy through the provision. and use of national intelligence Approved For Release 2006/08/02 : CIA-RDP80M01048A000300270018-3_; TS l 6439-74 :SLID-l as e_... `' is a m-:t jot- e - a n sior_ and definition of ~ `h.- , , _ role -':,2 LC_ =:~ s co:?~lrnur_~y-t__ Iea~ser_ A nt':rricr of reviet:?s of t.e '.: n S: ecr C v rri _ r? _ t '_1 ?1i. v 1 L1S'v e cl ddres. 4e!' tl~? leacle-shi-) role of the DC 1 over the ; ears. The Joint Study Croup Re ort of 1960 observed t' hat there was no comet on understanding o;: how to achieve coordination, that the _role the DC-_ and of CIA In coordination lacked clari v and that theme was considerable confusion as to how the DCI was to operate. The report noted that coordination could be construed as either co n^. and or ersuasion and that it could be carried our through leadC i 1 : e elli ,. c . ship `?J 1--. yt~.,._..,. programs, identification of new problem areas, in.-estigation of problems under the right to survey intelligence activities, and the solution of prob- lems by agreed cooperation under the leadership of the coordinator. Even in 1960 the Joint Study Group was urging a stronger ma:i- agement role on the DCI and recommended that he act to achieve more effective community coordination through ''co.-nand channels. 1' This recommendation was approved by the NSC. In 1968 the Eaton Report urged the DCI to r_~ae authorita- tive and consistent determinations as to t Erne validity of re qui r e- meats in relation to the costs of meeti._-~g them and the effective- ness of resources in satisfying intelligence needs. The broad guidance needed from the DCi could be in the form of a proposed National Intelligence Plan setting forth objectives, targets and priorities for the Secretary of Defense, the Community and program managers so that resources would be available to respond to present and foreseeable requirements. - - In 1969 the.Bross Report, addressing the community role of the DCI, observed that both President Kennedy (January 16, 1962) and President Johnson (September 24, 1966) had characterized the DCI as the "or-in_cipal intelligence officer of the government" and had directed the DCI to act as the leader of the intelligence conununity as his primary task. The Schlesinger Report in March 1971 proposed three options for the creation of a leader of the core-?nunity who would control intelligence resources, manage most resources, and coordinate resources appropriated e.lsevwhere. The first option was a Director of National L?lt?_1.ligence who would control all major intelligence resources, leaving the Defense Department only the tactical. The second option was a Director of Central Approved For Release 2006/08/02 : CIA-RDP8.0MO 1048A000300270018-3 TS %~.~ I39-74 Ir_`elli=_ence ...io